The Importance of a Good Location in New Businesses

516 WordsJan 29, 20182 Pages
1Choosing an optimal location is very important for a business unless businesses are not tied by particular factors of location like running web-based educational services businesses. In other cases, finding a suitable place to locate the business is vital in order to accomplish the vision that costs are minimised and benefits maximised, which is a long-term decision. Making location decisions should take many factors such as location costs, labour and land into consideration, which demands the business owners fully understand the consequences of these factors chapter and verse. This essay will weigh and analyse the various factors and effects of location to carefully explain the meaning of the statement that one of the most important considerations when implementing a strategy is that of location. 2To start a new business, cost tends to the most important factor for the reason that minimising location costs is the predominant measure due to the short co cash. Location costs can fall into fixed location costs and variable location costs. Fixed costs usually include search costs, planning permission, refurbishment, purchase cost and government help. Rent or leasing charges, business rates and some labour costs relating to location might be ongoing relating to location. Variable costs are those such as labour costs and transport costs that increase as output rises. Location costs have to be paid regardless of the scale of the business, or else the business will be faced with
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